S&P 500 Target Achieved. What Next?
Alexandros Yfantis | Oct 04, 2017 09:50AM ET
In previous posts where we made a short-term analysis in SPX, we initially had two scenarios. Either 2520 or 2360 was to be seen during September-October. Following that post we saw price respecting support levels and gave more chances to the bullish scenario as the index did not break 2420. The analysis that followed here and here suggested that bulls were in control. Price never broke down below critical support levels and we are now above 2520 having our target achieved. So what now? Price will soon reverse towards 2500-2510 for another wave 4 correction.
SPX is near completion or has already completed 5 waves up from 2420. Price is making higher highs and higher lows. Price remains inside the bullish channel. Now the boundaries of that channel around 2510 are to be test as a wave 4 pull back should soon start.
Longer-term trend remains bullish according to my automated system with critical support at 2480.
On a daily basis as long as price is above 2505 short-term bulls have nothing to fear. The next wave up could and should take them to around 2600-2650.
We will be monitoring things closely and will update this view once we reach target or see something that can change short-term plans.
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